ISU researchers on team showing Pell Grant impact on community college expansion

Posted Apr 13, 2011

AMES, Iowa -- The federal budget compromise for the 2011 fiscal
year will include a $500 million cut to the
Federal Pell Grant program, although the maximum award will
still be $5,550 for the next academic year. The cut to the Pell
program comes amid a new national report -- authored by
researchers from three universities, including Iowa State
University -- showing that recent increases in Pell Grant
funding have produced both increased enrollment and students
taking more credit hours at community colleges in recent years.

The report, titled "The Growing Impact of the New Pell
Grant Funding: A profile of 205 Community Colleges in 25
States," was presented this week at the annual meeting of
the Council for the Study of Community Colleges in New Orleans.

Linda Serra Hagedorn, a professor of educational leadership and
policy studies (ELPS) and associate dean of the College of
Human Sciences at ISU, was co-director of the project.

"Pell Grants are awarded on the basis of need," said
Hagedorn, who is also president of the Association for the
Study of Higher Education. "The fact that the number of
awards increased so drastically speaks loudly that
disadvantaged low-income students were stepping across the
threshold of opportunity -- and doing so at the invitation of
our President.

"Our country needs skilled American workers and the
community college is the appropriate venue to attract
low-income and displaced workers," she continued. "I
fear that policymakers will learn too late that restricting
access will only lead to increased dependence on foreign
knowledge workers and a continuation of a depressed
economy."

Stephen Katsinas, a director and professor in the Education
Policy Center at the University of Alabama, directed the
project, which was conducted under the auspices of the National
Rural Scholars Panel of the Rural Community College Alliance.
Joyce Lui, a second year Iowa State ELPS doctoral student, also
collaborated with researchers from the University of Alabama
and California State University Northridge on the research.

Data from from 205 community colleges in 25 states

The report summarized responses from 205 community colleges in
25 states to a survey conducted in summer 2010 through January
2011. There were complete responses from community colleges and
technical colleges in nine states, including Iowa.

The research found that community college enrollment increased
by more than 200,000 students from 2008-10 at the institutions
that participated in the survey, while the total number of Pell
Grants increased by 388,588 during those two academic years.
During that time, full-time equivalent enrollment (students who
took 12 credits hours per semester) saw a 14 percent increase,
as compared with a 9 percent increase in total enrollment at
the institutions in the sample. In the summer, full-time
enrollment (FTE) grew by 15 percent, while total enrollment saw
a 10 percent increase.

Researchers concluded in the report that expanded Pell grants
appear to be enabling students to attend community colleges
full-time -- particularly in the summer -- which could
eventually lower the time-to-degree and improve college success
rates.

"The data shows that Pell grants are providing greater
access and more students are becoming full-time students,"
Lui said. "And if more students are becoming full-time
students, then the idea is that it will be quicker for them to
accomplish their goals -- whether it's a certificate, or
transferring to a four-year institution like Iowa State.
It's undeniable what the funding does to allow them to
complete their goals."

The study also showed how Pell Grants are reducing the marginal
costs of attending community colleges. While tuition, fees,
books and supplies increased by $255 on average between
2008-10, the average Pell Award rose by an average of $596, or
5 percent, during the same period.

Rural community colleges see great Pell benefits

Lui also reports that rural community colleges -- like the ones
found in Iowa -- saw their full-time enrollments almost double
as a result of the expanded Pell Grant opportunities.

"A lot of the media rhetoric around community colleges has
been centered around large, urban community colleges [30-50,000
students and multiple campuses]. But in the state of Iowa, the
rural ones really do a lot to serve our students and our
communities and they've benefitted from this Pell grant
policy," Lui said.

The new report presents a comprehensive view of data from all
205 schools in the sample. Another report will be issued in
several weeks highlighting the nine states that provided
complete data.

Hagedorn and Katsinas have met with lawmakers on Capitol Hill
to share their research with them. Lui says they plan to
present this research to their peers at additional professional
conferences.

Quick Look

A new national report authored by researchers from three
universities, including Iowa State University, shows that
recent increases in Pell Grant funding have produced both
increased enrollment and students taking more credit hours at
community colleges in recent years. The report, titled
"The Growing Impact of the New Pell Grant Funding: A
profile of 205 Community Colleges in 25 States," was
presented this week at the annual meeting of the Council for
the Study of Community Colleges in New Orleans.

Quote

"Our country needs skilled American workers and the
community college is the appropriate venue to attract
low-income and displaced workers. I fear that policymakers will
learn too late that restricting access will only lead to
increased dependence on foreign knowledge workers and a
continuation of a depressed economy."